When Have I Earned Revenue?

Many small and medium-sized businesses use varying basis of accounting depending on their financial reporting requirements. For companies preparing their financial statements in accordance with Generally Accepted Accounting Principles (GAAP), recognizing revenue could become a more co

Cash vs Accrual Basis Accounting

Which is best for YOUR company? How does your business maintain your financials? Under the Tax Cuts and Jobs Act, taxpayers are eligible to select their accounting method according to the new limits in tax years beginning after December 31, 2017. Taxpayers which have an average annual

Having Two Sets of Books

Did you realize that some companies actually utilize two sets of books? Companies often have a set of books for income taxes and one to comply with Generally Accepted Accounting Principles (GAAP). There are numerous differences that exist between accounting for income taxes and GAAP.

Expensing vs. Capitalizing

De Minimis Safe Harbor Limit For tax years beginning on January 1, 2016 or later, the IRS has increased the de minimis safe harbor threshold for expensing from $500 to $2,500 per invoice or item for taxpayers without applicable financial statements. This limitation is for purposes for

Benefits of Utilizing Statement of Cash Flows

GAAP(Generally Accepted Accounting Principles) Net Income is Great, But How are My Company’s Cash Flows? Chances are your business will utilize the Income Statement and Balance Sheet when analyzing its annual, semi-annual, quarterly, and monthly results. However, the Statement o